Fiscal Policy

The Plan to Have Red States Bail Out Blue States

– May 19, 2020

My exhibit reveals a distinct, positive relationship between state politics and debts. The more a state was governed by Democrats in recent decades, the larger is its current debt burden; the more it was governed by Republicans, the smaller is its current debt load.

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Fiscal Policy

Rubio with Another Call for Industrial Policy

– April 25, 2020

I trust that the consumers, entrepreneurs, business owners, investors, and innovators who make up that system will learn important lessons from the mistakes that might have been exposed during this pandemic and fill the gaps they identify. Do I trust the government to do the same? I don’t. Sorry.

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Crisis, Fiscal Policy

Washington Motto: Spend During Good Times and Spend Even More During Bad Times

– April 21, 2020

According to the empirical evidence, there is little doubt that large government debt has a negative, and in many cases an increasingly worsening, impact on the growth potential of a debt-burdened economy.

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Crisis, Daily Economy, Debt, Economic Trends, Fiscal Policy

The Virtues of Fiscal Discipline

– April 10, 2020

Deficits used to be temporary affairs racked up in exceptional periods as the result of shocks, and paid down with surpluses. Despite years of decent economic growth, public debts in most western countries remain at high levels relative to GDP. Consequently, capacity to respond to crisis – such as natural disasters, wars and the one we are facing now – through borrowing is considerably reduced.

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Fiscal Policy

For the Love of Cronies

– March 27, 2020

Politicians will be politicians, you may say. But unfortunately, we will have to live with the distortions and the debt for decades to come.

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Fiscal Policy

No, We Don’t Need A New Reconstruction Finance Corporation

– March 27, 2020

The Reconstruction Finance Corporation was far from the model of a scrupulous, competent and independent government agency that it is alleged to be.

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